Amgen Inc. (AMGN) has reported a 7.50 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $1,935 million, or $2.59 a share in the quarter, compared with $1,800 million, or $2.37 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $2,160 million, or $2.89 a share compared with $1,985 million or $2.61 a share, a year ago.
Revenue during the quarter grew 7.75 percent to $5,965 million from $5,536 million in the previous year period. Gross margin for the quarter expanded 146 basis points over the previous year period to 82.11 percent. Total expenses were 58.34 percent of quarterly revenues, down from 63.28 percent for the same period last year. This has led to an improvement of 494 basis points in operating margin to 41.66 percent.
Operating income for the quarter was $2,485 million, compared with $2,033 million in the previous year period.
However, the adjusted operating income for the quarter stood at $2,859 million compared to $2,366 million in the prior year period. At the same time, adjusted operating margin improved 519 basis points in the quarter to 47.93 percent from 42.74 percent in the last year period.
"We finished the year with strong operating performance," said Robert A. Bradway, chairman and chief executive officer. "We anticipate several new product development opportunities and launches in 2017, and are excited about the Repatha cardiovascular outcomes data we released today. We have established a firm foundation for longer-term growth."
For financial year 2017, Amgen Inc. projects revenue to be in the range of $22,300 million to $23,100 million. It forecasts diluted earnings per share to be in the range of $10.45 to $11.31. It forecasts diluted earnings per share to be in the range of $11.80 to $12.60 on adjusted basis for the same period.
Operating cash flow improves
Amgen Inc. has generated cash of $10,354 million from operating activities during the year, up 6.40 percent or $623 million, when compared with the last year.
The company has spent $8,658 million cash to meet investing activities during the year as against cash outgo of $5,547 million in the last year.
The company has spent $2,599 million cash to carry out financing activities during the year as against cash outgo of $3,771 million in the last year period.
Working capital increases
Amgen Inc. has recorded an increase in the working capital over the last year. It stood at $34,806 million as at Dec. 31, 2016, up 16.60 percent or $4,955 million from $29,851 million on Dec. 31, 2015. Current ratio was at 4.11 as on Dec. 31, 2016, down from 4.44 on Dec. 31, 2015.
Debt moves up
Amgen Inc. has witnessed an increase in total debt over the last one year. It stood at $34,596 million as on Dec. 31, 2016, up 10.08 percent or $3,167 million from $31,429 million on Dec. 31, 2015. Total debt was 44.57 percent of total assets as on Dec. 31, 2016, compared with 43.91 percent on Dec. 31, 2015. Debt to equity ratio was at 1.16 as on Dec. 31, 2016, up from 1.12 as on Dec. 31, 2015. Interest coverage ratio improved to 7.58 for the quarter from 7.16 for the same period last year.
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